Case Law Details
S. K. Goldsmiths Industrial Co-operative Society Ltd. Vs ITO (ITAT Bangalore)
The Income Tax Appellate Tribunal (ITAT) Bangalore, in the case of S. K. Goldsmiths Industrial Co-operative Society Ltd. Vs ITO, addressed significant aspects concerning the applicability of section 80P(2)(a)(i) of the Income Tax Act, 1961 (the Act) to interest income earned by a co-operative society from mandatory investments. This case sheds light on how investments mandated by specific statutes, like the Karnataka Co-operative Societies Act, 1959, are treated for tax deduction purposes under the Act.
Background: The appellant, S. K. Goldsmiths Industrial Co-operative Society Ltd., a co-operative society registered under the Karnataka Co-operative Societies Act, 1959, filed an appeal against the CIT(A)’s order disallowing deductions under section 80P of the Act for the Assessment Year 2017-18.
Issue at Hand:
Issue 1: Deduction under Section 80P(2)(a)(i) for Interest Income from Statutorily Mandated Investments
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